Two people have died in a house fire in Victoria, and a third person is in serious condition in hospital.

Fire Captain Bob Jones says flames were shooting out from the back and front of the house and two vehicles in the driveway were ablaze when firefighters from the nearby hall arrived at about 4:30 a.m. Saturday.

He says the young man and woman who died were believed to be among a group of students who rented the house, and the person in hospital is a female.

Jones says one of the victims was found outside and firefighters located the other in a bedroom.

He says there was a party at the house on Friday night and that several out-of-town guests were staying there.

Neighbour Steve Hicks says he was among the neighbours who stood on the street in the middle of the night and watched firefighters carry a body out on a stretcher as the house burned down.